Commons Sense

House of Commons · Written Ministerial Statement

Financial Services Update

17 December 2020 · Treasury

Proposed by John Glen Con Salisbury

Business Compliance

Summarised by AI from the official record, so it can contain mistakes.

View on Parliament.uk

At a glance

Key points

  • The Government has laid before Parliament Dame Elizabeth Gloster's report on the investigation into London Capital & Finance plc.
  • The report concludes that the Financial Conduct Authority did not effectively supervise LCF.
  • The Treasury will launch a consultation on regulating non-transferable debt securities and set up a compensation scheme for LCF bondholders.

Issue summary

The statement provides an update on the investigation into London Capital & Finance plc (LCF) and announces a compensation scheme for affected bondholders.

Action requested

The Government has laid before Parliament Dame Elizabeth Gloster’s report, which concludes that the FCA did not effectively supervise LCF. The Treasury will launch a consultation in the New Year on regulating non-transferable debt securities and set up a compensation scheme for LCF bondholders.

Key facts

  • LCF was an FCA authorised firm offering mini-bonds to retail consumers, impacting 11,625 people who invested around £237 million.
  • Dame Elizabeth Gloster’s report was delivered on 23 November 2020 and concludes that the FCA did not effectively supervise and regulate LCF.
  • The Treasury will launch a consultation in the New Year on the regulation of non-transferable debt securities.
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